Updated September 1, 2022
Defense Primer: Military Pay Raise
The phrase “military pay raise,” frequently used in
Pay tables are available at https://www.dfas.mil/
discussions of military compensation, almost always refers
militarymembers/payentitlements/Pay-Tables/
to the annual increase in basic pay for members of the
PayTableArchives.html.
uniformed services. By law, basic pay is automatically
increased at the start of each calendar year by an amount
How Is the Annual Increase in Basic Pay
linked to the change in the Employment Cost Index (ECI),
Calculated?
although the President or Congress may override this
Section 1009(c) of Title 37 provides a permanent formula
statutory adjustment.
for an automatic annual increase in basic pay that is indexed
to the annual increase in the ECI for “wages and salaries,
Pay Raise for 2023
private industry workers.” The automatic adjustment is
equal to the increase in the ECI from the third quarter of the
third preceding year to the third quarter of the second
The adjustment in basic pay for 2023 under the
preceding year. For example, in the 12-month period
statutory formula is 4.6%, although Congress can
between the quarter that ended in September 2019 and the
enact a law to supersede this adjustment.
quarter that ended in September 2020, the ECI increased by
2.7%. Hence, the pay raise for calendar year 2022, as
What Is Basic Pay?
calculated by the statutory formula, was 2.7%.
Basic pay is one component of the military compensation
package, which also includes housing, subsistence, health
However, under subsection (e) of this statute, the President
care, and retirement benefits. For most servicemembers, it
can specify an alternative pay adjustment that supersedes
is the largest element of the compensation they receive in
the automatic adjustment. Additionally, Congress may pass
their paycheck and typically accounts for about three-fifths
a law to specify the annual pay raise, superseding the
of an individual’s regular military compensation (RMC).
automatic adjustment and/or any presidential adjustment.
RMC is “the total of the following elements that a member
Statutory Formula for 2023
of the uniformed services accrues or receives, directly or
indirectly, in cash or in kind every payday: basic pay, basic
The adjustment in basic pay for calendar year 2023 under
allowance for housing, basic allowance for subsistence, and
the statutory formula is 4.6% (reflecting the increase in the
Federal tax advantage accruing to the aforementioned
ECI between the third quarter of 2020 and the third quarter
allowances because they are not subject to Federal income
of 2021). The actual increase in basic pay for 2023 can be
tax.” (37 U.S.C. §101(25)).
different, depending on presidential or congressional action.
Congressional and Presidential Action
The rate of basic pay an individual receives varies based on
for 2023
his or her paygrade (rank) and years of military service. For
example a newly enlisted recruit (paygrade E-1) with four
The FY2023 President’s Budget requested a 4.6% increase
or more months of service and less than two years of
in basic pay, equivalent to the statutory formula. The
service receives $1,833.30 in basic pay per month in 2022,
House-passed version of the National Defense
while a more senior enlisted person (paygrade E-6) with
Authorization Act (NDAA) for FY2023, H.R. 7900, and the
between 10 and 12 years of service receives $3,987.60 per
Senate Armed Services Committee reported version of the
month. A newly joined officer (paygrade O-1) with less
FY2023 NDAA, S. 4543, did not contain provisions
than two years of service receives $3,477.30 in basic pay
specifying the increase in basic pay. If Congress does not
per month in 2022, while a more senior officer (paygrade
pass a law specifying a different rate, the increase specified
O-4) with between 10 and 12 years of service receives
by the statutory formula will go into effect on January 1,
$7,891.80 per month.
2023.

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Defense Primer: Military Pay Raise
Table 1. Historical Increases in Basic Pay
Pay raise figures do not include targeted increases (“pay table reform,” or PTR), which are discussed in the comment column
Calendar
Year in
Provision
Which Pay
Enacted
Raise Was
Statutory
Increase
Budget
into Law
Increase in
Effective
Formula
in ECI
Request
PAA
(NDAA)
Basic Pay
Comments
PTR: Additional increases for midgrade and
2003
=ECI +0.5%
3.6%
4.1%+PTR
n.a.
4.1%+PTR
4.1%+PTR
senior enlisted, midgrade officers, and some
warrant officers.
PTR: Additional increases for midgrade and
2004
=ECI +0.5%
3.2%
2.0%+PTR
n.a.
3.7%+PTR
3.7%+PTR
senior enlisted, and some warrant officers.
2005
=ECI +0.5%
3.0%
3.5%
n.a.
3.5%
3.5%

2006
=ECI +0.5%
2.6%
3.1%
n.a.
3.1%
3.1%

PTR: Additional increases for midgrade
2007
= ECI
2.2%
2.2%
n.a.
2.2%+PTR
2.2%+PTR
enlisted and some warrant officers; pay table
extended to 40 years of service.
2008
= ECI
3.0%
3.0%
n.a.
3.5%
3.5%

2009
= ECI
3.4%
3.4%
n.a.
3.9%
3.9%

2010
= ECI
2.9%
2.9%
n.a.
3.4%
3.4%

2011
= ECI
1.4%
1.4%
n.a.
NGP
1.4%

2012
= ECI
1.6%
1.6%
n.a.
NGP
1.6%

2013
= ECI
1.7%
1.7%
n.a.
1.7%
1.7%

2014
= ECI
1.8%
1.0%
1.0%
NGP
1.0%

2015
= ECI
1.8%
1.0%
1.0%
NGP
1.0%
No increase for paygrades O-7 and higher.
2016
= ECI
2.3%
1.3%
1.3%
NGP
1.3%
No increase for paygrades O-7 and higher.
2017
=ECI
2.1%
1.6%
1.6%
2.1%
2.1%

2018
=ECI
2.4%
2.1%
2.1%
2.4%
2.4%

2019
=ECI
2.6%
2.6%
n.a.
NGP
2.6%

2020
=ECI
3.1%
3.1%
n.a.
3.1%
3.1%

2021
=ECI
3.0%
3.0%
n.a.
3.0%
3.0%

2022
=ECI
2.7%
2.7%
n.a.
NGP
2.7%

Sources: Statutory formula from 37 U.S.C. §1009; increase in ECI from Bureau of Labor Statistics; presidential alternative adjustment from
presidential notification to Congress; provision enacted into law from relevant NDAA.
Notes: PAA = presidential alternative adjustment; PTR = pay table reform (targeted changes in certain cel s of the pay table, thereby giving
certain groups higher pay raises than provided by the general increase); NGP = no general statutory provision; n.a. = not applicable.













Lawrence Kapp, Specialist in Military Manpower Policy

IF10260




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Defense Primer: Military Pay Raise


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